High wire artist and daredevil Karl Wallenda was internationally known for his dangerous stunts, often performed without a safety net. For years, he performed daredevil feats to countless audiences of stunned onlookers. Unfortunately, on March 22^nd, 1978, Karl’s luck finally ran out, while walking a tight rope over one hundred feet in the air suspended between two towers of a hotel in Puerto Rico. A combination of faulty rigging and strong winds tripped up Wallenda, who fell to his death.

While it can be tempting to follow in the footsteps Karl Wallenda and take risks without a safety net, when it comes to money, it’s extremely important to understand and effectively manage your risks to ensure financial wellness. Here are several tips to keep in mind when handling financial decisions in the new year.

Maintain Adequate Emergency Funds

Before you make any important decisions, you should make sure you can pay for your regular living expenses. At the very least, opening a small savings account of $2,000 or less can help you weather short-term, unexpected hiccups without leaving you stressed about your bills. If you have the option, a long-term savings account with several months of living expenses will keep you solvent in case of larger financial crises such as a job loss or unexpected medical issue.

Find a Second Income Source

Piggybacking on the previous paragraph, another way to protect yourself from the financial stress of job loss is to diversify your sources of income. While not everyone has the time to start a side hustle, even something as small as selling old collectibles online can add some extra money to your emergency fund. If you’re able to put money into investments, you can even earn additional money without having to commit time to a side hustle or second job.

Minimize Your Debts

Debt often carries a higher interest rate than savings or investments and taking on excessive debt is one of the highest barriers to entry for most American families. This is what’s called a debt spiral, where an individual feels a loss of control thanks to chains of ever-increasing debt obligations. By staying away from excessive debt, you can maintain greater control over your finances, which helps to reduce stress.

Maintain Good Health

Speaking of stress: staying physically fit is not only good for your health—it also positively impacts your financial wellness! You’ll find that it costs less money to maintain good health, by taking steps such as regular exercise and healthy eating, than it will when you need expensive medical procedures to fix the physical ailments and diseases that come with poor health. While it is easier said than done, what better time than the New Year to commit to starting that diet or exercise plan?

Life is full of risks, so it’s important you do what you can to protect yourself. The goal of financial wellness is to reduce the overall stress that comes with budgeting and financial planning and putting yourself in a good enough financial situation where you can start thinking about things like investing and wealth generation.

As we head into November, the weather starts to get colder, the sun starts to get lower, and the holiday shopping season officially begins! With all the hustle and bustle of Black Friday deals and Cyber Monday discounts, trying to find the perfect gift, this time of year can be perilous for the unwary shopper. Every year around this time, incidents of fraud rise as criminals use the increased shopping activity to scam victims out of money, personal information, or even their purchases themselves.

Before you begin holiday shopping this year, take some time to familiarize yourself with the best practices for shopping safely. "Know Before You Shop" is critical to you having a happy holiday season!

Shop with reputable retailers

It’s best to shop directly with online retailers you know and trust. Bookmark your favorite shopping sites to get there quickly and safely. Avoid typing the name of the retailer into your browser bar.

A tiny typo could land you on a fake site that looks just like the real one. Many scammers create lookalike websites and buy URLs that are similar to legitimate retailers, in order to catch consumers who enter addresses containing typos. You might make a “purchase” on one of these illegitimate sites and unwittingly hand the scammers your credit card number and other personal info.

Vet new-to-you businesses

Did you spot an amazing product from a new seller? Make sure you do your homework and research any business you’ve never purchased from in the past. Look for online reviews and search the Better Business Bureau website for complaints. Check the “contact us” page on the website for a U.S. address and phone number. Then take it a step further: call the business to verify.

Why? The FBI reported that some scammers hijack the contact info of real U.S. businesses to make their shady site look legitimate.

Beware amazing deals

Did you spot an ad on Facebook or Instagram offering rock-bottom prices or an eye-popping offer of free stuff? Reports of lost money from social media scams have more than tripled in the past year, according to the U.S. Federal Trade Commission (FTC).

Remember, if an offer looks too good to be true, it probably is! The FBI found that many sites at the center of its recent spate of complaints were advertised on social media platforms.

Always compare prices before you buy. Abnormally low prices could be a red flag that you’ve landed on a fake site that’s been set up to snag your personal information or steal your money.

Don't browse on public Wi-Fi

Avoid shopping from public Wi-Fi next time you’re sipping a latte at your favorite coffee shop. The guy staring at his phone at the next table could be a hacker spying on your online activity.

Shopping online often requires giving out information that an ID thief would love to grab, including your name, address and credit card number. You should be mindful of your surroundings whenever you're entering personal information; you never know if someone is watching over your shoulder.

Check site security before you buy

Look for a lock icon in the browser bar of a site to verify that they use SSL (secure sockets layer) encryption. The URL should also start with “https” rather than just “http.”

Secure websites are configured to mask the data you share, such as passwords or financial info. Shopping exclusively on secure sites reduces the risk that your private information will be compromised while you shop.

Don’t fall for email scams

You might get emails or texts offering amazing bargains or claiming there’s been a problem with a package delivery. Delete suspicious messages from unfamiliar senders. Don’t open attachments or click links in unsolicited or unexpected messages, because they could infect your computer or phone with viruses and other malware that can steal your personal information or require costly removal.

Guard your personal information

Here’s a general rule: No shopping website should ever ask for your Social Security number. If a site does request this type of very personal information, run in the other direction!

Get in the habit of providing the minimum personal information necessary in order to complete your purchase.

Keep an eye out for fraud

Double-check your bank and credit card statements for fraudulent charges at least once a week. Alternatively, set up account alerts to notify you of any new activity on your card. When you receive a text or email notification, you can check your account to make sure you recognize the charge.

Mind the details

After you make the purchase, keep the details in a safe place. Hang onto the receipt, your order confirmation number and the tracking number the seller provides. If you have a problem with the order, this information will help you quickly resolve the issue.

Track your stuff

After you make an online purchase, keep tabs on it to make sure it’s headed your way. If the merchant refuses to provide shipping information or respond to your requests for the status of your order, contact your credit card issuer for help. They may remove the charge from your bill and look into the matter.

Report scammers

Did you get scammed? If so, file a complaint with the U.S. Federal Trade Commission and the FBI’s Internet Crime Complaint Center. Tip: If you suspect you may be a victim of ID theft, the FTC offers an identity theft recovery plan.

But following these online shopping safety tips may help you foil scammers and avoid becoming a target in the first place.

No one likes thinking about death, but it's something we all must face sooner or later. If you are dealing with a recent passing in your family or have a family member with a terminal illness, it's important to prepare yourself both financially and emotionally before making big decisions.

Take your time. Allow yourself to process your grief. Don't rush any decisions. At time of death, you can focus on dealing with doctors, funeral homes, and immediate family members. This will keep your thoughts organized and give you time to process your emotions before needing to worry about the decedent's finances.

When You Are Ready

Taking charge of financial affairs can help the healing process. It gives you something to focus on and allows you to feel in control. Since each estate is unique, it's important you consult with your own legal and accounting professionals to help guide you through the process.

• If you are a Trustee, the estate planning documents will provide you with access to funds for funeral and other death-related expenses.
• If you are a named executor, you will have to wait for court-appointed access to funds, but you should be able to retrieve the decedent's will from the safe deposit box.

Handling Retirement Benefits

If applicable, you should contact an HR representative of the decedent's employer for help with retirement plans. A surviving spouse can roll over money from their deceased spouse's retirement plan into their own IRA.

However, if you are considerably younger than your spouse, you may want to keep those assets in your spouse's retirement plan. This may allow you to access those assets sooner without penalty.

Covering Expenses

One of your biggest concerns following a death in the family will be ensuring the survivors can meet their financial obligations, while also handling legal and funeral costs. Make sure you have sufficient cash on hand to cover these costs. This may require you to take a part of your life insurance proceeds or other death benefits to increase your cash reserves. As a rule, try to keep at least 6 months' worth of living expenses in an easily accessible account, such as a checking or savings account. This will free your attention for other financial decisions.

If you were not the chief financial decision maker in your household, it may help to seek the advice of a fiduciary financial advisor. It's important that you contact a fiduciary specifically, as financial advisors fall into two categories: nonfiduciaries and fiduciaries. A fiduciary financial advisor is required, by law, to act in the best interest of their client, whereas nonfiduciary financial advisors can make decisions that put their own best interest before yours. You can find resources for getting in touch with vetted financial advisors at the websites for the Board Standards for Certified Financial Planners (www.cfp.net) or the Financial Planning Association (www.onefpa.org). Should you seek outside financial advice, make sure to wait until you are emotionally ready to handle this important decision. Be sure to carefully screen any financial advisors before you agree to work with anyone. 

Caring for Emotional Needs

If you're wondering whether you or someone close to the deceased could benefit from bereavement counseling or other support—the answer is most likely yes. You should never be afraid to ask for help if you're having trouble processing your grief. Your community may have mental health services, not to mention the supportive role offered by your local church, mosque, or synagogue.

You should consider creating a lasting memorial to the deceased. Finding a way to honor and remember the people you have lost can be an excellent source of healing for survivors. This could be something as simple as a brick paver in a memorial walkway to create a tangible remembrance that pays tribute to the life of your loved one. If your loved one favored an important cause, charity, or was very involved with their alma mater, consider setting up a scholarship or donation in their name.

What To Do When a Family Member Passes

There are a number of things you and your family will be required to do when one of your loved ones passes away. From a legal standpoint, there is nothing you need to do immediately after a family member's passing. Give yourself time to grieve over and process the loss. However, once you are ready, you will want to handle these things in the first few days:

1. Locate any health care powers of attorney, advance health care directives, funeral and burial instructions, etc. and review them for possible instructions about disposal of the body and funeral arrangements.
2. Locate any papers relating to prearranged funeral services or pre-purchased burial plots.
3. If your loved one has served in the U.S. Military, check the website www.USMilitary.about.com and search for information on Military Honors available at burial such as US Flag and Military Representative.
4. Contact the decedent's banks to see if they have any safe deposit boxes.
5. Locate the original copy of the will or trust, if there is one.
6. Locate all the legal and financial documents that pertain to the deceased person's assets such as deeds, vehicle titles, stocks, bonds and insurance policies.
7. Locate and secure important personal documents such as driver's license, social security card, passport, birth certificate, divorce decree, legal separation agreement, marriage license, military separation papers, citizenship and retirement documents.
8. Maintain a detailed list of all expenses relating to the final care and/or death of the decedent. You will probably be able to obtain reimbursement for these expenses from the decedent's estate or trust, and some of these expenses will be deductible for estate tax or income tax purposes.
9. Contact the deceased person's financial planner, CPA and estate planning attorney. They each need to know and will each have a role in helping you. The attorney will prepare any documents necessary to confirm the authority of the successor trustee of the trust. This will give the trustee access to assets within the trust to cover costs of the funeral and/or other related expenses.
10. Request a minimum of five death certificates from the funeral home. Most life insurance policies and related assets require an original certificate with the claim form.

Once you have made arrangements to meet with a fiduciary financial advisor, you can start working on the more complex financial issues that will arise with the passing of a loved one. Within the following week, you should:

1. Contact the insurance agent or agency handling each life insurance policy and request death benefit claim forms. If the deceased had a financial planner, they will often do this for you. Note that most insurers will usually cut a check relatively quickly following the death of a loved one. Do not feel compelled to invest this money immediately. Most insurance companies will let you keep the proceeds from a life insurance policy in an interest bearing cash account until you have a plan for investing it. If you know your loved one had a life insurance policy but you cannot find it, contact the American Council of Life Insurers (www.acli.com), which offers guidance in tracing missing policies.
2. Notify all other insurance carriers (i.e., health, long term care, umbrella, disability, accidental death, travel, vehicle, homeowners or renter's insurance).
3. Get a list of all the beneficiaries of the insurance policies with their age, relationship to deceased and their current address and phone number.
4. Contact the deceased's current and past employer(s) to see if any retirement plans or life insurance policies are in place and request the necessary claim forms. Many companies make every attempt to help the families of their employees after a death. They may immediately cut you a check for wages owed, vacation pay, sick pay, and life insurance benefits. If the death was the result of an accident on company time, there may also be accidental death and dismemberment benefits and you will also need to notify Worker's Comp in that instance.
5. Gather all of the decedent's bills and expenses that are coming due, bank and brokerage statements, and last year's tax return.
6. Locate and organize notes regarding assets and liabilities, such as promissory notes, loans, business interests, patents, and royalties.
7. Check with banks and credit card companies to see if there was additional life insurance connected with the decedent's accounts.
8. Contact all of the financial institutions that hold any assets of the deceased. Tell them you need the date of death values on each asset in each account. Ask them to send you a copy of this information. Note the name of the individual assisting you.
9. Locate and secure any items mentioned in a governing document, will or trust or documents of title.

Once you have the death certificate, there are several more steps you will need to take. You will have to:

1. Process life insurance claims.
2. Apply for Social Security benefits at 1 (800) 772-1213 (and/or the Veteran's Office at (916) 731-7300 if applicable) and inform them of the death of the individual. Otherwise, you'll be required to pay back any monies overpaid to the decedent. Many times the funeral home will have notified Social Security; confirm this with them.
3. Close credit card accounts and destroy credit cards.
4. Notify banks and brokerage firms and remove the deceased's name from any joint accounts.
5. Meet with the deceased's or your financial advisor, as appropriate, to develop a long-term investment plan for the estate assets, including any life insurance benefits to be received.

Within the following weeks, you will also need to:

• Gather the legal documents (deeds, promissory notes, deeds of trust, loan or real estate documents), estate planning documents (such as wills and trusts), all current and/or past due bills, statements, claims forms, etc., and set up an initial meeting with the fiduciary, CPA and the estate planning attorney to identify what needs to be done and coordinate who will do it.
• Lodge the original will with the court in the county of his/her legal residence.
• Meet with an attorney to determine whether a petition for probate of the will must be filed.
• Begin preparing for filing the estate tax return (Form 706). Some of the forms and documents you have been collecting will be needed by your CPA or attorney to document date of death calculations for that return.
• Your attorney or CPA can assist you with finalizing and understanding any legal documents and/or forms that you have received.
• The fiduciary financial advisor and estate attorney can also assist you with funding the trusts (if applicable) and with making distributions to any beneficiaries.
• The fiduciary financial advisor and CPA can help you make IRA and pension plan election decisions.

This information is provided as a guide for general information purposes only. New Tripoli Bank does not warrant the accuracy and completeness of this material. This information is not considered a recommendation to buy or sell any investment or insurance. We strongly recommend you consult an attorney or tax and estate planning expert for specific guidance.

Managing money as an adult can be stressful. Between checking accounts, savings accounts, IRAs, 401(k)s, bills, mortgages, loans, and more, handling personal finances can be a lot to think about. If the prospect of looking at your budget stresses you out and causes you to put off important financial decisions, it might be time to simplify! With some effort and commitment, you can streamline your personal finances and save yourself time, effort, and money in the future.

Here are some steps you can take to ease your financial stress.

Automate Your Bills

The best way to lighten the load of financial decisions you make each month is to let your financial institution do it for you! Putting all your recurring bills on autopilot can save you significant time and hassle each month. This includes things like credit cards, utilities, insurance, loans, mortgage, and rent. Additionally, automation means you will never have to worry about being late on your payments!

New Tripoli Bank’s online and mobile banking tools both have a Pay My Bills service where you can set up automatic bill payments.

Go Paperless

Nobody likes paperwork—it creates a huge mess and often you forget about or misplace important documents. There’s nothing worse than finding an overdue bill in what you thought was a pile of junk mail!

Many services allow customers to opt-in to paperless statements. They will keep important documents in your online account, where you can access them at any time. Not only do you remove the stress of losing your bills, you’re also reducing the clutter in your home!

New Tripoli Bank offers our customers paperless eStatements that are emailed at the end of each month and accessible via our online and mobile banking platforms.

Consolidate Accounts

It can be easy to accumulate multiple checking, savings, CDs, loan, and retirement accounts over the years without realizing it. As you hop between financial institutions or start retirement accounts upon being hired at a new job, you leave many accounts floating around that you may forget about. These accounts could cost you money, as is the case for some 401(k)s, where the service fees were previously handled by an employer you no longer work for.

Take some time to identify these accounts and consider consolidating them into your more active accounts. You should close checking and savings accounts with your previous banks and transfer the funds into your current bank. Consider rolling your 401(k)s from former employers into the retirement account connected to your current job. You’ll benefit from having all your funds in one spot for easy access while also minimizing maintenance fees.

You may also want to look at bundling your insurance policies, as many companies offer significant discounts to consumers who take out multiple policies from the same insurer.

Use One Credit Card

Credit card bills are the primary source of stress for modern consumers. If you’re someone who looks for the best deals and rewards with each credit card, it can be easy to find yourself with multiple credit accounts.

You should consider reducing your credit card usage down to a single card. Pick the credit card company that offers you the most in return—cash back, travel rewards, or other perks—and commit to using only that credit card. This will leave you with one bill to pay each month, with the added benefit that your single statement is much easier to monitor for errors or fraud.

Remember that cancelling your credit cards can negatively impact your credit score—we’re simply you to commit to using one. Consider storing the unused cards in a safe place.

Pay Down Debt

This step is obvious but it’s worth bringing up. We’ve put out a few articles on how to effectively pay down debt, but the short explanation is you should prioritize your debt based on interest rate.

List your debts from highest to lowest interest rate, then focus on putting the extra money from your monthly budget into paying down the balance on the highest interest rate. When that debt is paid off, move down the list, paying down the debt with the next-highest interest rate and so on. While this is a slow process, you’ll end up paying less money in the long term on compounded interest.

Set Savings to Automatic

If you have the capability to save money each month after paying for bills and necessities, you should consider setting up an automatic transfer of money from your main account into a savings account. This takes the responsibility of saving your money out of your hands, with the added benefit of making sure that money is tucked away before you have a chance to spend it.

New Tripoli Bank customers can set up automated, recurring transfers between their accounts utilizing our online and mobile banking tools.

Focus on Important Goals

It is a great thing to have financial goals. Whether you’re planning to buy a car, a home, or simply looking to retire with a sizeable nest egg, these goals help focus your budget and save effectively. Just make sure you’re not biting off more than you can chew!

Try to limit yourself to one or two big savings goals at a time. Ideally one of them should be saving for retirement, since you want to get a jump start to take advantage of compounding interest. But you should set another savings goal, then focus on completing that goal before moving onto another. You’ll find that limiting yourself helps you reach each goal faster.

Conclusion

The one thing to remember when you set out to simplify your financial life is this: you’re committing to a lot of legwork upfront to ease your stress in the long run. Take some time to plan out what you want to accomplish and set some realistic targets that you can hit.

If you need help simplifying your financial life, New Tripoli Bank has the tools you need to take some of the financial burden off your shoulders. Consider signing up for one of our free checking accounts, which gives you access to online banking tools like automated bill payments, money management tools, and paperless eStatements. We also have knowledgeable friendly staff who are always ready to help our customers simplify their financial life.

The paperwork has been signed, your new living room is full of several cardboard boxes labeled “clothes” and “silverware” and such, and the keys to your new home are resting safely in the palm of your hand. A wave of relief washes over you as you realize the last year of house hunting, mortgage shopping, and seemingly endless stacks of paperwork is finally over and you’re ready to settle into your new residence.

Now the real work begins!

While you’re officially a home owner, this doesn’t give you permission to treat your finances more leisurely. In fact, all that advice you followed and those good financial habits you developed leading up to this point will help you as you focus on keeping your finances healthy now that you’re a home owner. At this stage, you’ve probably already calculated how much home you could afford, saved funds for your down payment, and experienced the loan application process. Now it’s time to apply that knowledge to budget as a home owner and keep that momentum going, building a solid foundation for your future.

Build a Foundation for Your Budget

By the time you purchase a house, you should have plenty of practice budgeting. It can be tempting, after finally achieving the goal of home ownership, to take a break from worrying about your finances, but this is precisely the time when it’s more important than ever that you establish a homeowner-oriented financial plan.

Your budget should take into account all the costs that come with owning a home. This includes mortgage payments, increased expenses associated with higher utility costs, homeowner’s association or condo fees, and saving for maintenance or repairs. Those last two can be a bit of a surprise for home owners transitioning from renting to owning, where the landlord foots the bill for maintenance and repairs.

The average homeowner spends $2,000 per year for things like landscaping, housekeeping and repairs. This amount trends higher when you include larger expenses like replacing an HVAC system or repairing a roof, both of which can easily top $5,000.

You should speak with your community bank about setting up a home savings fund where you can save up for more expensive projects. Extensive repairs or renovations to your home can cost upwards of $15,000 depending on the size of the project, which leads many people to take out home equity loans to pay for home repair. However, by putting money away in a savings account, you will be able to pay cash for these services instead and avoid high interest rates and finance charges.

It can also be helpful, budget-permitting, to prioritize paying off existing debt like car loans, student loan payments, or credit card debt to free up additional funds that you can funnel into your home savings fund. Of course, you should take into account how much of your income you can devote to debt, mortgage, and saving while still leaving enough spending for food, utilities, and other necessities.

Reassess Your Long-Term Savings Goals

It can be easy to lose sight of other long-term financial goals while balancing your budget around home ownership. Mortgage payments, home repair funds, and daily living expenses are immediate and necessary, but it’s just as important to make sure your budget includes saving for retirement. No one wants to hit retirement age unable to retire due to lack of foresight!

If your employer offers a 401(k) or similar retirement account, check your monthly contribution rate to make sure it fits within your budget. Once you’re comfortable with your balance between mortgage payments, monthly bills, and other expenditures, you should consider increasing your retirement contributions to more quickly fund your nest egg.

Depending on the situation, you could have many different savings goals in mind when you sit down to plan out your budget. Things like an emergency fund for non-housing related expenses or college savings accounts for your children may also be on your list of goals. For an emergency fund, it is advisable to save at least three to six months’ worth of regular expenses in a savings account that you can quickly withdraw in the case of an emergency.

Should you find yourself struggling to set money aside for non-discretionary spending on top of your financial responsibilities as a new home owner, it can help to categorize your monthly expenses into “wants” and “needs” so you can identify spots in your budget where you might be able to tighten your belt to meet your savings goals. New Tripoli Bank’s online banking tool features a Manage My Money option that can help you organize your spending and better visualize how much you spend on certain things.

Conclusion

After the stressful experience of purchasing a home, it is as important as ever to focus on your finances and make sure you can live comfortably, with your financial future secure.

Spend some time going over your budget and make sure you include things like mortgage payments, a home savings fund, retirement savings, and an emergency fund in addition to your monthly living expenses. This provides a holistic view of your financial situation and lets you identify where you can increase your spending or where you need to decrease spending. Make sure you work out a budget that covers all your ongoing home costs as well as setting money aside for repairs and improvements. However, don’t neglect your long-term savings goals like retirement.

Buying a home can take the weight of certain financial obligations off your shoulders, but in their place can add new challenges. If you’re looking for help getting your budget in order, consider opening a savings account with New Tripoli Bank; we’re more than happy to help you reach your financial goals! With proper planning, you can prevent yourself from becoming overwhelmed or in debt. Ideally, preparing yourself financially begins before you purchase a home, but it’s never too late to start making planning a priority.

Former Federal Reserve Chairman Alan Greenspan once stated, "Financial education is a process that should begin at an early age and continue throughout life. This cumulative process builds the skills necessary for making critical financial decisions."

At New Tripoli Bank, we understand the importance of helping our community's youth establish a strong financial foundation where they can understand basic concepts like budgeting, simple interest, and establishing and maintaining good credit and synthesize those concepts into good financial choices.

According to the Council for Economic Education's 2020 Survey of the States, only 21 states in the U.S. require high school students to take a course in personal finance in order to graduate. While this is an improvement since the CEE's first survey in 1998, there remains a sizeable financial education knowledge gap.

New Tripoli Bank believes that financial capability education improves the financial health outlook for our youth and prepares them for unexpected financial situations. It is important that young adults know what to expect from significant life milestones like paying for college, purchasing a home, opening a business, or building a nest egg. To that end, New Tripoli Bank works in association with Cemark to provide financial literacy resources to local schools around the Lehigh Valley.

For Financial Literacy Month, New Tripoli Bank wants to offer the following tips to students and their parents on how to shore up money management skills and prepare for the post-graduate workforce:

• Set Specific Measurable Attainable Realistic Trackable goals. Prioritize achievable savings goals—whether it's saving for a computer or building an emergency fund—and make sure saving for that goal fits within your means. Create a plan of action and follow up by measuring your progress over time.
• Start a savings account (if you don't have one already). New Tripoli Bank offers automatic transfer services to move a set amount from your checking account to savings so you can save monthly without having to remember yourself.
• For working-age students, consider part-time or seasonal employment. You will learn more about personal responsibility and have an opportunity to practice managing expenses.
• Track your spending and avoid making impulse purchases. Create a budget and review it periodically to make necessary adjustments.
• Gain perspective about risk and reward. Knowing how stocks, bonds and mutual funds can affect an investment portfolio shows you how financial decisions can grow—or shrink—your savings. Some high school classes and financial literacy-based websites, provide simulations of how these investments work in the real world.
• Learn about credit scores—a representation of your financial past, present, and future. New Tripoli Bank can offer tips to help you establish and maintain good credit.

Having the knowledge about how to best manage your money is just the start. When young adults practice proper money management techniques early, they're more inclined to make effective financial decisions throughout life. The sooner your children start to grasp these concepts, the more apt they'll be for a better financial future.

Thanks to the American Rescue Plan Act of 2021 signed into law by President Biden on March 11, 2021, millions of Americans will be receiving another check from the federal government to help with economic difficulties caused by the pandemic.

As always when it comes to these big pieces of legislation, there are sure to be plenty of questions. How much will you get? When will the payment arrive? How do you get the money into your account? Please take the time to read through this FAQ so you know what to expect.

Am I eligible to receive an Economic Impact Payment? How much will I get?

Individuals earning $75,000 or less will receive a new payment of $1,400, as will heads of households earning up to $112,500. Couples earning $150,000 or less will get $2,800. Payments to those earning more than those amounts will decrease and cut off completely for individuals earning more than $80,000, couples earning more than $160,000, and single parents making more than $120,000. Qualifying parents of children will receive an extra $1,400 per child. That means a married couple with two dependent children may receive $5,600. Also, for this round, dependents now include 17-year-olds, as well as college students, older adults and children of all ages with certain disabilities who are claimed on tax returns.

The payments will be based on information from a taxpayer’s 2019 return, or their 2020 return if it has already been filed.

Will my financial institution know when I am scheduled to receive my Economic Impact Payment?

No, those payments are issued by the IRS, not your financial institution. You can visit the https://www.irs.gov/coronavirus/get-my-payment for more details, including the status of the payment and a link to many frequently asked questions.

How will I receive my payment?

The IRS will automatically issue your payment via direct deposit to the bank account it has on file based on the information you provided on your tax return. Electronically generated direct deposits are typically the first to go out.

If the IRS does not have direct deposit information, you will be mailed either a paper check or a debit card to your address on file with the IRS. You won’t be able to choose between a paper check or debit card. In fact, some people who received a check in an earlier round of payments could receive a debit card this time, and vice versa. The IRS says to carefully check your mail, so you don’t accidentally throw out the check or debit card. Paper checks will arrive in a white envelope with the U.S. Department of the Treasury seal on the upper left side. The debit cards will arrive in a white envelope that prominently displays the U.S. Department of the Treasury seal, and the envelope will also state “Not a bill or an advertisement. Important information about your Economic Impact Payment.”

It will likely be several days to weeks for mailed paper checks or debit cards to arrive.

The IRS will send you a paper notice in the mail within a few weeks after any payment is sent. It will include information about what form the payment was made and where it was sent.

If you received your payment by mail in the first two rounds, it is recommended that you include your direct deposit bank account information on your 2020 tax return if you are expecting a refund. It is also recommended to file your return as quickly as possible. While there is no guarantee, this could lead to you receiving your next economic impact payment electronically.

What if I’m on Social Security and don’t need to file a tax return?

Your payment will be deposited directly to the bank account where you automatically receive your Social Security payment. A check will be mailed to you if you normally receive a paper check for your Social Security payment.

Someone I know already got their payment, why don’t I have mine yet?

Not all payments will go out at once. During the first two rounds, electronic payments were the first to be made, but they were staggered and were not all released at the same time. Checks and debit cards were the next to be sent and they are dependent on regular mail delivery. The whole process is likely to take several weeks.

How will I know when my federally-issued electronic payment arrives?

You can check your bank account at any time of the day or night, using our mobile banking app or online banking. You can also set up an alert via our mobile app or your online banking account that will notify you via text or email as soon as a direct deposit has been made.

How can I deposit my check if I receive it by mail?

The quickest and most convenient option for depositing your check is Mobile Deposit.  Simply use your smartphone or tablet and our mobile banking app to make a deposit any time.

Other deposit options include visiting a branch or using an ATM that accepts deposits.

How does the debit card work?

If you receive the Visa debit card, which is managed by Money Network Financial LLC and has the name MetaBank on the back, you can visit www.EIPcard.com for information about how to activate and use it, or view the debit card FAQ. Before using the card, you will need to activate it, set a PIN, and sign the back. You’ll be able to use the card for in-store, online, and phone payments, and can get cash at an ATM. However, please be aware that there is a charge for using this debit card at a New Tripoli Bank ATM.

What happens if I don’t receive my Economic Impact Payment?                                                                                        

The IRS says “if you filed taxes using an online tax-preparation service or software, it’s possible that your payment will be sent to a temporary bank account that has since been closed. Tax preparers customarily set up such so-called Refund Transfer accounts so they can deduct authorized fees before passing the balance along to the recipient and closing the account.

If your payment is sent to a closed account, the financial institution is required by law to ‘bounce’ the funds back to the IRS. If this happens (or if you receive no payment or the wrong amount for other reasons), your only recourse may be to claim a Recovery Rebate Credit when you file your 2020 taxes.”

My bank account information has changed or was incorrect, what can I do?

According to the IRS, your payment information can’t be changed at this time. It says that “If you don’t get a payment and you’re eligible to receive one, you can claim the Recovery Rebate Credit on your 2020 tax return.”

What happens if the post office was unable to deliver my payment?

If your payment is not deliverable or is returned to the IRS for other reasons, you will need to claim the Recovery Rebate Credit when you file your 2020 tax return. Be sure to include your current address on your return so the IRS can update your information.

What if my address was changed or is wrong?

If your payment can’t be delivered to you for any reason and is returned to the IRS, you’ll need to claim the Recovery Rebate Credit on your 2020 return.

What is the Recovery Rebate Credit?

The credit is the money you receive in Economic Impact Payments. If you do not receive the amount you are entitled to, you can apply to receive those funds when you file your 2020 tax return. You can visit the IRS website for more information about the Recovery Rebate Credit.

Is the money I receive taxable?

No. The IRS says this money is not income, so you won’t owe federal taxes on it; it won’t affect any expected federal income tax refund; and it won’t affect your income when it comes to determining eligibility for federal assistance or benefit programs. Some states may consider this as taxable income; check with your tax preparer or your state tax department for more information.

Should I be worried about Economic Impact Payment scams?

Scams are always a concern when money is involved, so you should be on the lookout. Some possible scams include:

• Emails or texts that try to get you to click on a link that then takes you to a form that asks you for personal information so you can get any payment that you are owed. Do not respond to any email or text asking for personal information.
• Phone calls where someone claims to be from a federal agency such as the IRS or Treasury Department. Never assume an incoming call is from an authorized person especially if they are asking for personal information.
• People who contact you claiming that you can get your payment faster by paying a small fee by using either a gift card or prepaid debit card. Always be cautious when working with any person or business you do not know or cannot verify.
• Someone calls you and demands personal information such as bank account numbers or your Social Security number right away or you’ll lose your benefits. This is almost always a sure sign of a scam.

In general, you should be aware that federal agencies won’t ask you to pay anything up front to get your payment, and they won’t call, email, text, or reach out to you via social media to request your bank account or Social Security number, or to verify personal information.

Between credit cards, student loans, and mortgages, there are a variety of different types of debt out there. Part of tackling your debt obligations is knowing which of your debts to prioritize first. By prioritizing your debt, you can create a step-by-step plan that helps you get rid of the bad and expensive types of debt fast, while at the same time reducing what you owe in interest.

Here are some tips to help take control of your debt:

Start with high-interest credit cards. Minimum payments on most consumer credit cards are typically low, but only paying this amount will make it take longer to pay off the balance and cost you more. You should tackle your credit cards in the order of their interest rate, starting with the highest.

Spend as much as you can comfortably afford each month on paying down the highest interest rate card and stick with the minimum payments on the others. When that card’s balance reaches zero, focus on the next-highest interest rate and so on. While it can be daunting at first, you’ll find it easier to tackle your debt in this order as each card requires less monetary investment.

Pay off your most expensive student loans. Private student loans typically carry higher interest rates than government loans. If your private loan’s interest rate is above 8%, you should pay that down next, especially if you’re not eligible to claim the student loan interest as a tax deduction on your income taxes.

Keep up with your regular payments on lower interest debt. Mortgages, car loans, and government student loans generally have lower interest rates and many offer tax benefits, but don’t forget about them! You can continue to make the minimum monthly payment obligations on these types of loans while you’re focusing on your higher interest debts.

As a guideline, many advisors suggest that your overall debt shouldn’t exceed 36% of your gross income. Managing your finances well helps you free up money from debt payments, enabling you to put away savings for good use. These include an emergency fund, unplanned expenses, and most importantly your retirement.

If you’re looking for help managing your debt, there are plenty of tools available to New Tripoli Bank customers that will help you improve your financial wellness. With a checking or savings account, you are automatically enrolled in online banking where you can set up automatic bill payments to keep all your credit card and loan obligations all in one place. You can name each payment based on the interest rate which will allow you to easily track which ones you should pay down first.

New Tripoli Bank online banking also has the Manage My Money tool to help you track income and spending in one easy place. The tool automatically sorts your transactions into different categories such as gifts, entertainment, or insurance, so you can see how much you have available for debt payments and where you can afford to cut back to help get your finances in order.

When the holiday season rolls around, it’s normal to want to splurge on gifts for friends and loved ones. The holidays can be an exciting time full of advertisements for the hottest new toy and deals aplenty at all your favorite stores.

However, one of the best gifts you can give yourself when the decorations start going up is the peace of mind that comes with a financial health checkup! It may not be the most exciting present under the tree, but taking the time to ensure your goals, savings, and accounts are all in order will ensure you’ll be financially prepared after the ball drops on New Year’s!

Here’s how you can make sure your finances are in order for the New Year:

Check Your Account Balances

Before you can budget, you have to know how much money you have to work with! Take a moment and look back at your most recent bank statements so you know where you stand and make a point to check your bank statements every month as you enter 2021. Take note of how much money you’re spending versus how much you’re bringing in and make sure you’re actually adding to your savings!

Identify Your Weak Spots

We all have financial weak spots that can be pain points when it comes to saving for the future. As we mentioned in the previous section, take a look at your spending versus your income and separate your expenditures into groups of wants and needs. See if anything in your “wants” pile is something you could cut back on, like dining out or spending money on video games. The best thing you can do for your financial health is to set incremental, achievable goals for yourself. Every journey begins with a first step, after all.

Review Your 2020 Spending

Were you tracking spending in 2020? If so, good for you! Whether or not you’ve been paying attention to your spending throughout the year, the end of the year is a great time to look back and analyze how you did. Take some time to add up your purchases in different categories, whether it’s entertainment, groceries, or bills. You may discover some areas where you spent way more than you thought! Don’t beat yourself up over spending too much on yourself; just use it as a learning experience to set realistic goals for yourself in 2021. (And if you weren’t tracking your spending this last year, get started now!)

Set Some Goals For The Future

Is there a big purchase you’ve been meaning to save for but you keep getting distracted? Maybe you’re looking to save for college, a car, or even your first house? Or maybe you’re simply looking to cut back on spending and maybe add to your financial literacy. Grab a pen and paper and write down your top three financial aspirations, then make a plan for achieving them.

 If you need help, don’t hesitate to reach out to the friendly representatives at New Tripoli Bank. Our universal tellers and loan officers are here to help you reach your future financial goals and bring with them years of experience helping people with their money.

New Tripoli Bank’s Manage My Money tool can help you track your income and spending in one easy place. If you have a checking or savings account with New Tripoli Bank, all you need to do to start is sign up for online banking and log in to set up your Manage My Money tool. You will see your transactions automatically classified into different categories such as gifts, entertainment, or insurance, allowing you to easily organize your budget into wants and needs. It also displays your total spending and income and automatically calculates the difference, so you can easily identify your financial weak spots and track your 2021 progress at a glance. You can set spending limits in each category as well as setting savings goals that our online banking platform will track for you.

If you put these steps into practice in the coming year, you’re sure to find the gift of better financial health waiting for you next holiday season! Happy holidays!

Creating and sticking to a budget can be stressful even in the best of circumstances and right now most of us aren’t living in the best circumstances. The effect of COVID-19 on the economy has forced many Americans to take a close look at their budget in order to reassess their spending and make some tough decisions about their monthly spending.

If you have previous experience creating a household budget, this is nothing new to you. But for those of us who are new homeowners, renters, or college students creating their budget for the first time, the added uncertainty of 2020 can seem like a monumental hurdle toward financial security.

The Zero-Based Budget

There are many effective strategies for planning a budget, each of which has its own strength and weakness. However, in times like these, when money can be tight, one of the best methods to ensure that every dollar and cent is accounted for is something called zero-based budgeting.

The goal of a zero-based budget is to make it so the difference between your monthly income and your expenditures each month equals zero. Once you’ve accounted for every dollar, you can choose to maintain the same levels of expense in each category of your budget or change it up from month-to-month as your needs change. Because you have every dollar accounted for, you will know how much you are able to spend each month and won’t overspend a dime.

It’s one thing to explain a zero-based budget, but let’s take a look at an example budget for someone making $3,000 a month.

Starting Your Own Zero-Based Budget

Before you implement a zero-based budgeting plan, you should prepare a few things to ensure you stay realistic with your expectations.

• Know your monthly income. This includes your paycheck, any government benefits you may be receiving, and any other regular sources of income that remain the same from month to month.
• Track and categorize your expenses. Look at your spending from the previous month and come up with a list of categories for each. If you have savings goals, these should be categorized separately.
• Calculate your average expenses. Go back through two or three months of expenses and figure out what your average spending is in each category. Take note if there are any areas where you can cut back on spending.

There are plenty of budgeting apps that can help you categorize and track your monthly spending, including New Tripoli Bank’s mobile app which has a money management tool that automatically categorizes spending from your ATM/debit card into categories and allows you to set monthly targets.

Once you have all of this information prepared, you may be wondering how much to allocate to each category in order to create a “balanced” budget. While every person’s budget is going to be different, a very common rule of thumb to effective budgeting is the 50/30/20 rule.

With this approach, you should take the categories you have previously established and group them into “needs,” “wants,” and “debt/saving.” For example, we all need food to live and we need to pay our rent, so groceries and clothing would go into “needs,” but we also want to keep ourselves entertained and we want to eat out some time, so entertainment and eating out would go into “wants.”

You won’t always be able to follow the 50/30/20 rule, but if you’re unsure where to start with your budget, it’s a good baseline and you can adjust each category up or down depending on your personal needs.

Why Zero-Based Budgeting?

At the top of this article we mentioned the impact of COVID-19 causing many of us to have to re-examine how we spend our money each month. One of the benefits of zero-based budgeting is knowing exactly how much money is flowing in and out of your account each month, which can prevent you from spending money you don’t have.

If sudden unemployment or a reduction in work hours has you feeling like you’ve lost control of your finances, sitting down and organizing a zero-based budget spreadsheet can go a long way toward helping you regain that feeling of control by knowing where your money is going and where you can afford to cut costs.

The downside of zero-based budgeting is the amount of time it can take to maintain. Effective budgeting in this way requires you to hold yourself accountable and consistently monitor your spending so you know when you’re approaching your monthly limits.

Zero-based budgeting can also be hard for those of us with irregular income or variable expenses. If your job requires you to travel during certain times of the year more than others, then certain categories in your budget are going to vary wildly from month to month. If you’re a freelancer or contractor with a fluctuating schedule, you won’t always know how much money you have coming in from month to month which can make it harder to plan in this way.

However, if you have a steady income and can plan a few months in advance for big expenses such as holidays or weddings, then zero-based budgeting is a very useful budgeting tool whether you’re new to managing your money or looking for a strategy to regain control of your finances.